David Ellison, the 41-year-old son of Oracle founder Larry Ellison, is set to become the next CEO of Paramount Global after his Skydance Media agreed to merge with the company in a $4.5 billion stock deal, with Skydance and its consortium investing up to $6 billion.
If the deal closes, Ellison will be in charge of a media empire including CBS, MTV, and Paramount, becoming a significant player in Hollywood more than a decade after first entering the industry.
Ellison aims to transform Paramount into a "tech hybrid" by infusing technology, new leadership, and creative discipline, revamping the Paramount+ streaming platform. He plans on expanding into a "World-Class Media and Technology Enterprise" by leveraging Oracle's expertise and AI tools for content creation, recommendation, advertising, and cloud servers to enhance efficiency and storytelling.
He plans to invest $1.5 billion in Paramount's balance sheet, has identified $2 billion worth of possible cuts, and faced opposition from shareholders and Paramount leadership during his takeover pursuit.
He cites Steve Jobs as a mentor and emphasizes the interplay between art and technology, linking himself to Apple and Pixar in his pitch for Paramount's tech-media transition.
The incoming executive team has a vision for Paramount's streaming business focused on content, technology, and partnerships. Ellison plans to grow Paramount's Direct-to-Consumer business, with a strong focus on rebuilding the Paramount+ platform to improve technology and user experience.
Ellison plans to revamp Paramount+ technology for a user-friendly experience, focusing on improving the recommendation engine, reducing churn, and exploring partnerships to enhance streaming capabilities. Skydance Animation also partners with Oracle to create a studio in the cloud and utilize artificial intelligence tools. Ellison believes combining art and technology is vital for Paramount's future success.
The $8.4-billion merger deal, valued at $28bn, gives Ellison control over Paramount, shifting control from Shari Redstone after an extensive negotiation process.
The company faces challenges due to its heavy linear TV presence and significant debt load.
When competing with streaming giants like Netflix and YouTube, Paramount's main challenge is scale.
Paramount's stock fell 5% after the announcement.
The deal requires regulatory approval, and it's business as usual for Paramount until the transaction closes.
Sources: Bloomberg, Les Echos, Stream TV Insider, Quartz, Reuters, Business Insider, Los Angeles Times, Financial Times, The New York Times, Der Spiegel, InfoMoney, Deccan Herald, The Ankler.
This article was written in collaboration with Generative AI news company Alchemiq.
